| Basis Points |
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An alternative method of referring to “percentage points”, often used either in describing margins on commercial mortgages or to measure charges in interest rates. Basis points are represented in a hundredth of a percent (1/100 or 1 percent).
Bankapedia's Take:Basis points are usually just referred to as "points" and most often in reference to a Brokers commission. For example "I'm making 3 points on the back" means the loan agent is making 3 percent of the value of the loan in commission as a result of YSP.
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